Effingham authority may condemn IP Realty's land

Effingham industrial development board says it will use eminent domain if landowners refuse to negotiate a sale of the 3,100-acre property first.

Posted: Friday, October 07, 2005

RINCON

Plans for a 3,100-acre residential community could be replaced by a large industrial complex depending on the outcome of a dispute between IP Realty Co. and Effingham County Industrial Development Authority.

Both sides say they are prepared to go to court to settle a debate about residential growth versus economic development.

IDA lawyer Mickey Kicklighter of Springfield last week told IP Realty officials he is ready to begin condemnation proceedings under eminent domain unless negotiations start immediately. Officials at the land-dealing subsidiary of International Paper Co. (NYSE: IP) are not blinking.

"It is totally out of the question," said Mike Vaquer, governmental affairs consultant for IP Realty. "Our position is this property will never be anything but residential. If they want to proceed with legal action, they can do so."

"We need to decide if we want to be a perpetual bedroom community or if we want jobs here in Effingham," Lofton said. "We need diversification in our tax base to support residential growth or eventually it will be too expensive to live here."

The dispute centers around a 3,100-acre tract just west of Rincon that IP Realty started to develop about four years ago. Plans for a virtually self-contained community, similar to Godley Station in Pooler, include 5,000 houses, 1,000 town houses and apartments, churches, schools and a few commercial projects.

The tract is comparable in size to Rincon and expected to add 12,000 to 15,000 residents to Effingham's fast-growing population during the next 10 to 20 years. The new Blandford Elementary School is scheduled to open on the fringes of the tract next fall and the acreage is close to water and sewer lines.

IP Realty officials have said during planning-zoning board and County Commission meetings that they will sell parts of the tract to individual developers, who will build and sell commercial and residential structures. The realty officials said they will monitor the development to ensure compliance with their plans.

IDA officials became interested in the tract after a recent study ranked it the second-most desirable industrial location in Effingham.

Two railroads split the property. And plans for a parkway - to be linked to Jimmy DeLoach Parkway and Interstate 95 - enhanced the tract's industrial appeal, said Martin Wilkins, president of the IDA.

County officials have been talking for years about the need for more industries and businesses to pay for services related to population growth.

IDA officials site statistics showing that property taxes pay only 87 percent of the costs of services, compared to businesses that pay three times those costs.

Effingham Industrial Park has attracted several companies in the last few years and only about 50 usable acres of the 660 total acres remain. A 200-acre tract at Interstate 16 and Old River Road was purchased recently but more space is needed, IDA officials said.

Both sides said that earlier this year IDA officials asked about the property at least twice but were told IP Realty was not interested in selling. IDA officials said one inquiry was ignored and the other received a flippant, negative response.

Kicklighter last week sent a letter to IP Realty about possible legal action. IDA officials said that was a result of exasperation.

But Vaquer said IP officials were "shocked" by the threatening letter that arrived "out of the blue."

IP Realty didn't consider selling to the IDA for a number of reasons, including pending offers for all four parcels in the tract. Vaquer said the company also "was not interested in any industrial use" for the property.

"What part of 'no' don't they understand?" said Will Burgstiner, manager of land sales for IP Realty in Georgia.

Wilkins said the IDA wants to pay a fair price. But the company's refusal to discuss selling is unreasonable, especially considering the impact it could have on Effingham.

"We are at a critical point, sitting right on top of the growth at Georgia Ports," said Wilkins. "There are a lot of other places for residential growth and this is such a great industrial location.

"But IP Realty won't even talk to us," Wilkins said.

IP Realty has spent a lot of time and money preparing for the pending development, Vaquer said. Company officials say the time for considering non-residential use of the land expired four years ago.

"They haven't been jerked around or ignored," Vaquer said. "There are a number of problems with their plans for that property.

"Essentially, the property is already sold out and there is a waiting line should anything change," Vaquer said.

Vaquer said IP Realty is preparing a formal response to Kicklighter's letter and will continue working on the residential plans for the tract. IDA official say they will review the response and then make a decision on legal action.